Converting knowledge Into Practice

Transcription

1 Conveting knowledge Into Pactice Boke Nightmae srs Tend Ride By Vladimi Ribakov Ceato of Pips Caie 20 of June C o p y i g h t s V l a d i m i R i b a k o v 1

2 Disclaime and Risk Wanings Tading any financial maket involves isk. The content of this e-book, its vaious associated websites (paticulaly and and all elated coespondence ae neithe a solicitation no an offe to puchase o sell any financial instument. Although evey attempt has been made to assue accuacy, we do not give any expess o implied waanty as to its accuacy. We do not accept any liability fo eo o omission. Examples ae povided fo illustative and educational puposes only and should not be constued as investment advice o stategy. No epesentation is being made that any account o tade will o is likely to achieve pofits o losses simila to those discussed in this e- book. Past pefomance is not indicative of futue esults. By puchasing the softwae, subscibing to ou mailing list o using the website you will be deemed to have accepted these tems in full. The publishes, thei epesentatives and associates do not and cannot give investment advice. We endeavo to insue that elated websites ae available 24 hous pe day but we cannot be held liable if, fo any eason, a site is unavailable. The infomation povided in this e-book is not intended fo distibution to, o fo use by, any peson o entity in any juisdiction o county whee such distibution o use would be contay to law o egulation o which would subject us to any egistation equiement within such juisdiction o county. Hypothetical pefomance esults have many inheent limitations, some of which ae mentioned below. No epesentation is being made that any account will o is likely to achieve pofits o losses simila to those shown. In fact, thee ae fequently shap diffeences between hypothetical pefomance esults and actual esults subsequently achieved by any paticula tading pogam. One of the limitations of hypothetical pefomance esults is that they ae geneally pepaed with the benefit of hindsight. In addition, hypothetical tading does not involve financial isk and no hypothetical C o p y i g h t s V l a d i m i R i b a k o v 2

3 tading ecod can completely account fo the impact of financial isk in actual tading. Fo example: the ability to withstand losses o to adhee to a paticula tading pogam in spite of tading losses ae mateial points which can also advesely affect tading esults. Thee ae numeous othe factos elated to the maket in geneal and to the implementation of any specific tading pogam, which cannot be fully accounted fo in the pepaation of hypothetical pefomance esults, all of which can advesely affect actual tading esults. We eseve the ight to change these tems and conditions without notice. You can check fo updates to this disclaime at any time without notification. The content of this e-book and all elated websites and coespondence ae copyight and may not be copied o epoduced. U.S. Govenment Requied Disclaime Commodity Futues Tading Commission Futues and Options tading have lage potential ewads, but also lage potential isk. You must be awae of the isks and be willing to accept them in ode to invest in the FOREX, futues and options makets. The past pefomance of any tading system o methodology is not necessaily indicative of futue esults C o p y i g h t s V l a d i m i R i b a k o v 3

4 Dea Tade, In this epot I would like to show you exactly how you tun you knowledge into to pactice. One of the main poblems I see all tades encounte (newbies, veteans and pofessionals) is that maket conditions keep change all the time. The maket is dynamic. Tading methods and tading stategies ae pogessing vey quickly. This is an excellent and wondeful thing howeve it ceates a poblem since, fo example, we acquie a method that povides us with 300 pips a month. Then we find an additional method that povides 400 pips, 500 pips and so on. Ou natue always tells us to look fo the next ultimate tading method: the stategy that will geneate us moe pofits. Exactly as in the famous saying "the gass is geene on the othe side of the fence". It woks similaly in business. So, what exactly do I mean? Thee is no poblem in constantly upgading you tading. It is even highly ecommended. Howeve, a poblem aises when we see something that looks moe pomising than ou cuent method; we jump to gab this method afte seeing only one example, without tying to undestand all the aspects of this method. The chances fo ou disappointment ae much highe because without compehensive undestanding of the stategy we cannot succeed. Theefoe, tade impovement has to be systematic and consistent. In this epot I will intoduce the stages I am efeing to. One of the best tades I know says the following: "99.999% of all people have no idea how a ca's engine is woking and what functions the adiato and accumulato seve. Yet, they sit in thei cas, and dive it" Why have I mentioned this? The exact opposite happens in tading. Most tades in the wold ae tying to lean all the mechanisms of a ca befoe they dive it C o p y i g h t s V l a d i m i R i b a k o v 4

5 And I ask, what ae you doing this fo? You can dive you ca while you have no idea how the adiato functions. You simply follow the ules you wee taught: and it seems vey clea. So, why should it be complicated in tading? Why do we want to know all the existing indicatos in ode to use only indicato numbe 2 fo a specific stategy? Why should we daw millions of lines if accoding to the stategy we chose we need to use only Japanese Candlesticks? A tade has to be managed exactly like you dive: you get in the ca, do and that's it, you dive! So, the fist stage in becoming a good tade that makes money fo the long tem is: Pepae the gounds fo a tade You ve found an inteesting stategy? You have even seen examples of thee amazing tades, each povided 200 pips. This is geat. Howeve it doesn't mean that you undestand what is the ight timing to ente a tade. What should we do befoe we jump into the wate? You have studied a stategy. Excellent! Now, go to the chat and pepae 100 sceen shots whee you mak and name: "pe-enty to tade. Fo example: I'll choose the simplest stategy in the maket esistance o suppot beaking. This stategy s ules ae: Mak last esistance level. Wait until a candle beaks it and closes above it. Ente the tade. O: C o p y i g h t s V l a d i m i R i b a k o v 5

6 Mak last suppot level. Wait until a candle beaks it and closes below this level. Ente the tade. My fist stage is to mak last esistance level o last suppot level. That is why, this is exactly what I am going to do: Example 1: In this example I found and maked last suppot level. Example 2: In this example I found and maked the last esistance level. I keep doing this: I have to ceate lots of examples of suppot and esistance levels and daw them on my chats C o p y i g h t s V l a d i m i R i b a k o v 6

7 In ode to do this do the following: 1.pepae sceenshots of all the examples you can find and mak them. 2. Go ove them again and again until you see all the existing suppot and esistance levels. 3. Open a demo account and daw a line on evey suppot level and evey esistance level you cuently see on the maket. Afte you finish with this stage, you will be able to go to a live account and mak all the suppot and esistance levels you will see. In the eal system you natue will be to daw the esistance and suppots levels in the best way you can. It will push you to an excellent situation because by then you will be aleady familia with all the diffeent types of "pe-enty tade setups, accoding to you stategy. This is thanks to the good pepaation wok you have done until you stated live tading. Now we can go to the next stage: Lean how to execute a tade You have aleady dawn a line next to the "pe tade enty" level. Excellent. Now, you will lean how to ente a tade. 1. Pepae 100 sceen shots with specific and accuate enty points whee you think you should ente a tade. Accoding to the stategy I chose to analyze in this e-book (fo demonstation puposes only), I should look fo a candlestick that closes above last esistance o below last suppot level. 2. I open a chat and find 100 good potential enty points. In this stage, I don t cae at all if the tade has been successful o if it failed. All I cae about is finding 100 examples to an accuate enty point on the chat. I save a sceen shot of evey example I find C o p y i g h t s V l a d i m i R i b a k o v 7

8 Hee is how it looks like: Example 1: Example 2: C o p y i g h t s V l a d i m i R i b a k o v 8

9 I pepae a minimum of 100 sceenshots, save them and analyze them a few times in ode to undestand the best and accuate enty points. Afte I analyzed them I can move to a demo account befoe I do it with eal money. I stat looking fo eal enty points. When I find them, I can ente a tade. I don't cae about the tade s closing points now and you also should not be woied about it eithe. Fist you should lean about the best tade setups. You need to identify them so well that if I wake you in the middle of the night and ask you if thee is tade setup on this chat you'll be able to answe me "yes / no" with only one eye open. Afte you ve leaned to ente a tade, this is the time to lean how to popely close a tade. Theefoe, ou thid stage is: Lean how to close a tade accoding to the ules Similaly to the way you've leaned to ente a tade it is time to lean how to close it. You need to find a minimum of 100 examples on the chats that featue the ules accoding to you stategy. I eally don't cae if the closing point closes the tade with a pofit o with a loss, as long as it is accoding to the stategy s ules. I cae about finding a minimum of 100 examples of closing points accoding to the stategy you chose to wok with. I'll continue with the simple stategy I intoduced to you. The ules of closing a tade accoding to this stategy ae as following: Stop loss is set below the low of the candlestick that boke the esistance level, o above the high of the candlestick that boke the suppot level. The pofit taget is two times the stop loss size. As I said, I am going to seach fo a minimum of 100 examples of this specific closing stategy C o p y i g h t s V l a d i m i R i b a k o v 9

10 Example 1: In this example I can see that closing this tade meant a pofit that was two times bigge then stop loss size. As I said, in this stage, I eally don't cae about pofits o losses. Example 2: C o p y i g h t s V l a d i m i R i b a k o v 10

11 In this example, the tade closed with a loss. Howeve I only cae about seeing as many examples as possible that featue coect closing points accoding to the stategy I chose. So, as I said, I should collect as many examples as possible and analyze the sceen shots so that nothing supises me when I go live. I should be pepaed fo all the possible scenaios. Afte I've seen many examples, I stat using the exiting ules on a demo account. Even if you didn t execute a tade that tuned out to be a loss had you enteed it, lean now how close it coectly. Pactice it ove and ove again till you feel that nothing in maket can supise you: until you easily find the pefect time to close a tade accoding to you stategy. So, afte you've lean to open and exit a tade, it is time to lean how to do it togethe. Ou fouth and last stage is: Coect enty and exit fom a tade In this stage you ae going to do the last and most impotant thing. Afte you leaned to do it in the best and most accuate way, you will stat making money with any stategy. Afte the long and had taining we've done, accoding to my wok plan, you ae disciplined and wok like an emotionless obot in the maket. That's exactly how we should act. You ente a tade and close it accoding to the ules, and leave you emotions on the outside. In this stage we collect a minimum of 100 examples that show a potential tade setup, entance and closing points. We should follow though all the diffeent tade stages, fom the beginning to its end. Actually, we ae going to have a few sceen shots fo evey tade: pepaation, entance and close. Afte you collect all the examples, you should analyze it ove and ove again. Only then you can go to you demo account and stat going though all the stages togethe. Only when you feel that you do this automatically you can move to a live account and you pofits will be immediate. Afte you collected all the examples, pepae a new tading jounal and stat documenting the numbe of pofitable tades, numbe of pips you eaned, loosing tades and amount of pips you lost. Did you sum it up with a good pofit? Excellent! This stategy is geat, you can use it. I'll continue with the simple example I intoduced ealie. I will show all the stages in seveal examples. Then you will undestand exactly what I efeed to C o p y i g h t s V l a d i m i R i b a k o v 11

12 So, let s stat. Example 1: The tade s setup: The tade s enty point: C o p y i g h t s V l a d i m i R i b a k o v 12

13 The tade s closing point: And now, the last stage: sum up the tade on ou tading jounal. The tade pofited 2 times moe then the stop loss we set, accoding to the ules of this stategy. I ente +300 pips on the pofitable tades column. Let's see anothe example: Example 2 tade's pepaation: C o p y i g h t s V l a d i m i R i b a k o v 13

14 Next stage is executing the tade: Now we should exit the tade with a pofit o a loss: Now, all that is left fo us is witing down ou conclusions. This tade has been closed in stop loss (above the candlestick that boke the suppot, accoding to this specific stategy). I tun to my tading jounal and sum up the tade s details on the losing tades column. I ente minus 70 pips. I do the same fo as many tades as possible. Numbes ae impessive? Excellent! The stategy is vey good fo you and you undestand its ules! C o p y i g h t s V l a d i m i R i b a k o v 14

15 That s it guys! Tading is simple! It doesn't have to be complicated. Lean the methods you conside to be the best: its enty ules, exiting ules and lean to use them togethe. Convet them to numbes. They give you the necessay conclusions. Please note that on the testing stage, you ae bette to take a sequence of tades in ode to examine the stategy s eliability. That is, analyze all the tades fom last month, o last yea, etc. I wish you good luck and poductive leaning. I hope this e-book will assist you with you tading. To you success, Vladimi Ribakov C o p y i g h t s V l a d i m i R i b a k o v 15